Brokers have flagged Senex Energy (ASX:SXY) as an emerging star in the oil and gas sector. Senex is a small-cap oil and gas exploration company focused on Australia's Cooper Basin. Brokers are lapping over recent drilling results which show strong earnings/cashflow generated by Cooper oil as well as significant upside in its unconventional gas. Credit Suisse believes that recent share price weakness, which has seen the stock trade at a 46% discount to its Cooper Basin peers, makes it an attractive buying opportunity. JPMorgan, Deutsche Bank and Morgan Stanley have also communicated significant valuation upside on the stock.
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